Vecima Signs Video ResellerVecima Signs Video Reseller

VICTORIA, B.C. -- Vecima Networks Inc. ("Vecima" or "the Company") (TSX:VCM), a leading designer and manufacturer of equipment providing broadband access to cable, wireless and telephony networks, today announced it has signed a multi-year worldwide supply agreement with a major networking company to private label and exclusively sell a platform providing secure High Definition (HD) video. Vecima will retain the rights to sell the platform directly to a single leading US Multiple Service Operator. The new cable network product is designed to provide cable system operators with market leading technology delivering HD digital video streams in a secure format connecting directly to newer flat panel TVs, eliminating the need for an additional Digital Set Top Box. The result is a cleaner and more reliable installation offering a broader range of video services and a simplified user experience. This new technology is highly desired by the hospitality industry, hospitals, schools, universities and other institutions because it streamlines infrastructure requirements and reduces costs.

Driven by the upcoming large scale transition to HD in hotels, the market is expected to grow to a cumulative $600 million worldwide over the next ten years and creates opportunities for operators to deploy all-digital services to new market segments. In return for providing this customer the exclusive right to sell this product, the contract calls for a minimum annual revenue of $10 to $15 million. This product will start shipping in the first half of calendar 2010, ramping up rapidly thereafter.

"This is a major win for new breakthrough technology that Vecima has recently developed," said Vecima Chief Executive and Chairman, Dr. Surinder Kumar. "Our partnership with this industry leading networking company will ensure that together we are the dominant supplier to this growth market."

Vecima Networks Inc. (Toronto: VCM)